The Egyptian General Petroleum Corporation has concluded term negotiations with its customers for the export of naphtha over January-June 2011 at lower premiums compared with H1 2010, industry sources said Thursday.
Suez-loading cargoes are of heavy full range naphtha with a paraffin content of under 65%.
EGPC inked H1 2011 term supply contracts with Total, Vitol and ConocoPhillips at premiums ranging from $5-14/mt to the Mean of Platts Arab Gulf naphtha assessments on an FOB basis.
Total will lift seven clips, while Vitol and ConocoPhillips will each pick up four cargoes. Each cargo is 35,000 mt in size and the 15 cargoes amount to 525,000 mt of naphtha committed on a term basis over the six-month period.
EGPC will export three cargoes a month ex-Suez, except in February and May when only two parcels will be available for lifting.
Trading sources said premiums for the first, second and third cargoes for each month were inked at MOPAG plus $10-14/mt, $5.25-9.50/mt and $5-7.80/mt respectively.
In its initial tender document, EGPC had offered 16 cargoes but traders said one cargo was canceled due to low bids as well as factors which included concerns about piracy attacks around the Gulf of Aden, and the relative distance from the Suez to Asian markets.
At 525,000 mt, EGPC's January-June 2011 exports from the Suez is 16.6% lower than its Suez exports for H1 2010, under which 18 cargoes were sold to traders RBS Sempra, Marubeni and Total. Premiums under that contract were concluded at MOPAG plus $9-18/mt.
--Clarice Chiam
Suez-loading cargoes are of heavy full range naphtha with a paraffin content of under 65%.
EGPC inked H1 2011 term supply contracts with Total, Vitol and ConocoPhillips at premiums ranging from $5-14/mt to the Mean of Platts Arab Gulf naphtha assessments on an FOB basis.
Total will lift seven clips, while Vitol and ConocoPhillips will each pick up four cargoes. Each cargo is 35,000 mt in size and the 15 cargoes amount to 525,000 mt of naphtha committed on a term basis over the six-month period.
EGPC will export three cargoes a month ex-Suez, except in February and May when only two parcels will be available for lifting.
Trading sources said premiums for the first, second and third cargoes for each month were inked at MOPAG plus $10-14/mt, $5.25-9.50/mt and $5-7.80/mt respectively.
In its initial tender document, EGPC had offered 16 cargoes but traders said one cargo was canceled due to low bids as well as factors which included concerns about piracy attacks around the Gulf of Aden, and the relative distance from the Suez to Asian markets.
At 525,000 mt, EGPC's January-June 2011 exports from the Suez is 16.6% lower than its Suez exports for H1 2010, under which 18 cargoes were sold to traders RBS Sempra, Marubeni and Total. Premiums under that contract were concluded at MOPAG plus $9-18/mt.
--Clarice Chiam
